Money Exchange Advice

Should I pay in the local or my home currency?

Last updated: 24 February 2014

When withdrawing cash from a cash machine abroad or when paying by card, you may be presented with two options: paying in the local currency or your home currency. Which one should you choose?

Banks and retailers often offer the choice of completing transactions involving two currencies in the local or home currency. This is sometimes called 'dynamic currency conversion.'

When paying in your home currency you may find the presented price more familiar and therefore easier to understand. However, you should be aware that this option comes with higher exchange rates and sometimes additional conversion fees. As a result, you will end up paying significantly more. So, if presented with the choice, make sure you pay in the local currency.